You probably remember the old General Electric. It was a sprawling, messy conglomerate that tried to do everything from making lightbulbs and toasters to running a massive, risky shadow bank. It was a disaster for shareholders for nearly two decades. But if you’re asking is GE a good stock buy today, you’re actually looking at a completely different beast.
The "GE" you see on the ticker tape now is GE Aerospace (GE).
Following the final spin-off of GE Vernova in early 2024, the parent company shed its power and renewable energy skins. What's left is a lean, mean, jet-engine-making machine. It’s basically a monopoly-adjacent powerhouse in the aviation world. Larry Culp, the CEO who basically saved the company from the brink of bankruptcy, has turned this into a "pure play" aviation stock. It’s not your grandpa’s GE.
Honestly, the transformation is kind of staggering.
The Reality of GE Aerospace and Why It Matters
When people ask is GE a good stock buy, they often miss the nuance of how the aviation industry actually makes money. GE doesn't just make money when they sell a massive GEnx or LEAP engine. In fact, they often lose money or break even on the initial sale.
The real gold is in the aftermarket.
Think of it like the "razor and blade" model, but the razor costs $15 million and the blades are high-tech maintenance contracts that last 20 years. GE has an installed base of approximately 44,000 commercial engines. Every time one of those engines flies, GE makes money.
The Narrowbody Dominance
The LEAP engine, produced through CFM International (a 50/50 joint venture with Safran), is the workhorse of the modern sky. It powers the entire Boeing 737 MAX fleet and about half of the Airbus A320neo family. Because Boeing and Airbus have massive backlogs that stretch out toward the end of the decade, GE has a guaranteed pipeline of work.
They aren't just selling engines; they are selling decades of guaranteed service revenue.
Is GE a Good Stock Buy Right Now or Is It Overpriced?
Wall Street loves a comeback story, and they've certainly bid up the price of GE. It’s not "cheap" by traditional metrics. If you’re looking for a deep-value play, you’re about three years too late. However, the valuation has to be viewed through the lens of free cash flow.
Culp has a borderline obsession with free cash flow.
For the full year 2024 and heading into 2025, the company has consistently raised its guidance. They are looking at operating profits in the neighborhood of $6.2 billion to $6.6 billion. That's a lot of cash to return to shareholders through buybacks and dividends.
The Defense Moat
We can't ignore the military side. While commercial aviation gets the headlines, GE Defense & Propulsion is a massive player. They provide the engines for the F-15EX, the F/A-18 Super Hornet, and the upcoming T-7A Red Hawk. With global geopolitical tensions rising, defense spending isn't going down.
GE is a primary beneficiary of the Pentagon's "Pacific Deterrence Initiative."
It's a hedge. If the economy slows down and people travel less, the defense contracts keep the lights on and the cash flowing.
What Most Investors Get Wrong About the Risks
Nothing is a sure thing. If you think is GE a good stock buy means it’s a risk-free bet, you’re wrong. There are two big elephants in the room: Boeing and the supply chain.
Boeing has been a mess. You know it, I know it, everyone knows it. Since GE is the exclusive engine provider for the 737 MAX, any production slowdown at Boeing hits GE’s delivery numbers. If Boeing can’t get its act together and get planes off the line, GE’s "new engine" growth stalls.
Then there’s the supply chain.
Making a jet engine requires incredibly specific materials—specialized castings and forgings that only a few shops in the world can produce. During the 2024 earnings calls, Culp was very transparent about the fact that "material availability" remains a bottleneck. They have the orders. They have the demand. They just need the parts.
Comparing GE to Its Peers
If you're looking at GE, you're likely also looking at RTX (formerly Raytheon) and Safran.
RTX has had its own nightmares with the Pratt & Whitney Geared Turbofan (GTF) engines. Thousands of engines had to be grounded for inspections due to a powder metal defect. This gave GE a massive competitive advantage. Airlines that were frustrated with Pratt & Whitney started leaning harder toward GE/Safran engines.
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- GE Aerospace: Focuses on reliability and the LEAP architecture.
- RTX: Dealing with legacy repair issues but has a massive defense footprint.
- Safran: A great way to play the same trend, but you have to deal with European market dynamics.
GE is arguably the cleanest "story" of the bunch. It’s a pure aviation play with the best-managed balance sheet in the sector.
The Larry Culp Factor
You can't talk about GE without talking about the guy at the top. Larry Culp is widely considered one of the best CEOs of his generation. He came from Danaher, where he mastered "Lean" manufacturing.
He didn't just cut costs. He changed the culture.
He moved the corporate headquarters from a lavish Boston office to a smaller footprint. He pushed decision-making down to the factory floor. He stopped the "financial engineering" that defined the Jack Welch and Jeff Immelt eras. When you buy GE today, you are betting on Culp’s ability to continue squeezing efficiency out of every square inch of their factories.
The Long-Term Horizon: 2030 and Beyond
Is the stock a buy for a three-month trade? Maybe, maybe not. The market is volatile.
But is it a buy for a five-year hold?
The transition to more fuel-efficient engines is a multi-decade trend. Airlines are desperate to lower their carbon footprint and fuel costs. The GE9X engine, which will power the Boeing 777X, is the most fuel-efficient engine in its class. Even as we talk about electric planes or hydrogen, the reality is that long-haul commercial flight will rely on gas turbines for the foreseeable future.
GE is also investing heavily in "Rise" (Revolutionary Innovation for Sustainable Engines). They are testing open-fan architectures that could cut fuel consumption by another 20%. They are the ones defining what the 2040s look like in the sky.
Making the Decision
Deciding is GE a good stock buy comes down to your personal timeline.
If you want a steady, industrial powerhouse that dominates its niche and has a massive moat, it's hard to find a better candidate. The "conglomerate discount" is gone. The debt is manageable. The dividend is growing again.
But you have to be okay with the cyclical nature of aerospace. A global pandemic or a major conflict that halts air travel would hurt. However, unlike 2020, the company is now lean enough to survive a storm without needing a government bailout or a firesale of assets.
Actionable Next Steps for Investors
- Check the Backlog: Look at the most recent quarterly filing. If the "Aerospace Backlog" continues to grow despite delivery bottlenecks, the long-term thesis remains intact.
- Watch Boeing’s Delivery Rates: GE’s short-term stock price is tethered to Boeing’s ability to stabilize. Monitor the 737 MAX delivery monthly reports.
- Assess Your Portfolio Weighting: GE is now a high-beta industrial stock. It shouldn't be your only exposure, but it serves as a great anchor for a growth-and-income portfolio.
- Don't Ignore the Technicals: Since the Vernova spin-off, the stock has seen high momentum. Using a Dollar Cost Averaging (DCA) approach rather than a lump sum might be wiser if you're worried about buying at a local "top."
GE is finally a "normal" company again. It makes a vital product that the world can't live without, it charges a premium for it, and it has a management team that knows how to count pennies. In the world of high-flying tech stocks and risky startups, there’s something genuinely refreshing about a company that just builds really, really good engines.
The "broken" GE is dead. The new GE is just getting started.